CPG brokers can be viewed as agents or talent scouts for the grocery industry. They help brands connect with retailers, negotiate deals and much more. ... Connections: A skilled, established broker has developed and maintains important relationships with leading grocery retailers and smaller specialty stores. Here are some pros of when choosing to work with a food and CPG brokers.
1) Brokers allow you to focus on other aspects of your business
Running a business is a full-time job, and expanding a business can be overwhelming for many manufacturers. Both production and selling are significant factors of running a business and require equal attention. Hiring a broker to take care of sales allows business owners to focus their time elsewhere.
Brokers can also act as business advisors. They have a close working relationship with stores and can provide valuable feedback from retailers and customers, including how products are selling, the reaction of consumers to new and existing items, and current market trends, both locally and nationally. Utilizing this information can help you fine-tune aspects of your business that might not be working, and expand the elements that are.
2) Brokers are more cost-effective than hiring a sales team
Hiring a food broker can help your business save money. Whether you are meeting with stores yourself or hiring your own sales representatives, the costs associated with pitching new products can add up. Traveling to different stores uses up fuel and time, and can put a financial burden on your business. Also, hiring sales representatives for your brand can come with some high costs: not only will you be taking on new employee salaries, but you will also be responsible for travel expenses for these employees. Depending on the size of the territory, overnight travel may be necessary, resulting in hotel, fuel, and food costs.
Even though using a broker or your own sales team isn’t necessary to expand the area of your business, they are the best options. Analyzing your goals and the current size of your business can help you decide which one is best for you.
3) The right broker has the right connections
Brokers are already established in the industry and have connections that most food businesses do not. Smaller brokers have particularly strong relationships with buyers and managers that give them a boost when presenting new items. Whether it’s smaller local markets or large chain stores, brokers know who to talk to about getting your product into the store. Some large stores will not even meet directly with food business owners or manufacturers, in which case a broker may be your only way into the store.
The established relationships brokers have can also help save time and money, being very effective. Networking with buyers and store managers takes up large amounts of time, and it can take years to build the same type of relationships, and trust brokers already have.
4) Brokers do more than sell
It may seem like the only job of a broker is to get your product onto the shelf, but they do much more than that! While brokers do employ sales representatives to sell in products, they can also help to grow your business through other methods. Many brokers will work with stores to market the product and coordinate demos, especially during events and promotional sales. They not only help establish your presence in the store, but they also increase your overall marketing and retail merchandising, making it easier for consumers to become familiar with your brand. They are your ears and eyes at the grocery stores.
Brokers also work with stores to make sure your products stay on the shelf. When buyers are conducting category reviews and looking at which brands to cut, having a broker presence can offer protection. If your product is on the chopping block, they can negotiate promotions and deals to keep your product in the store. Additionally, they can provide information on sales and store feedback, which is a tremendous help to the business side of your brand.
Have more questions? Want to know in more detail all we can do for your brand? Be sure to reach out to us, we will be happy to show you can your sales can increase with our services.